Please help us continue to provide you with free, quality journalism by turning off your ad blocker on our site.

Thank you for signing in.

If this is your first time registering, please check your inbox for more information about the benefits of your Forbes account and what you can do next!

I agree to receive occasional updates and announcements about Forbes products and services. You may opt out at any time.

I'd like to receive the Forbes Daily Dozen newsletter to get the top 12 headlines every morning.

Forbes takes privacy seriously and is committed to transparency. We will never share your email address with third parties without your permission. By signing in, you are indicating that you accept our Terms of Service and Privacy Statement.

Asian American Consumer Market Is Now $1.2 Trillion And What That Means For Digital Brands

Inside a coffee shop in Silicon Valley, Palo Alto, California, a man writing code has transformed a ... [+] cafe table into a standing desk, using a portable computer rig which incorporates an ultra-thin laptop, reticulated laptop stand, and split keyboards, which the man operates with both hands, September 20, 2017. (Photo by Smith Collection/Gado/Getty Images)

Getty Images

Asian Americans have become the fastest-growing consumer segment in the U.S and digital platforms and inclusive content are serving them like never before, according to a new report by Nielsen. The $1.2 trillion Asian American consumer market has never been more important.

Asian American households on average have a 41% higher income than the national average and that buying power adds up. By 2024, Asian American buying power is projected to reach $1.6 trillion. Asian American households usually spend more annually than the national average on housing (+24%), food (+29%), education (+128%), apparel (+67%) and new cars (+$37%). Historically, this hasn’t translated to media, however, new digital platforms and more inclusive content are attracting and galvanizing this audience.

The growth of Asian American-led content and the exponential rise of esports have attracted an Asian American audience to consume more digital and media content. Nielsen also found that Asian Americans are almost twice as likely to cut the cord on cable. While broadband is growing across all consumers, they are more likely to chose broadband-only. 82% of Asian Americans subscribe to at least one streaming service as compared to 72% of the total population and they are more likely to try newer services like Sling TV, Hulu + Live TV, YouTube TV and AT&T TV Now to access live TV.

One reason Asian Americans may be turning to streaming services is because of representation. On Netflix, for example, Nielsen found that shows and comedy that depicted Asians were popular in the community including comedy specials featuring Ronny Chieng, Jo Koy and Ken Jeong and series with Asian American leads including Ugly Delicious, Wu Assassins and Patriot Act. The top episodic Netflix series in 2019 among Asian Americans also included titles with a diverse cast including V Wars, Lost in Space and I Am Not Okay With This.

Possibly the largest take away from the Nielsen report has to do with the rapidly growing industry of esports and the video game industry. The report found Asian American households spend significantly more time on digital devices than on live TV compared to the total population; 66% of the time spent is on computers, smartphones and tablets for Asian Americans, the highest rate among all consumer segments. Much of that time spent on the computer and other devices has to do with gaming. Asian Americans are 14% more likely to own a gaming console and 37% more likely to own Virtual Reality headsets.

While many Americans don’t know much about the esports industry, it is a huge draw for both players and enthusiasts. By 2021, esports viewers in the U.S. are projected to surpass all American sports league viewers except the NFL. Among Asian American gamers, over 1 in 4 say they watched an esports tournament live-stream in the last three months and 53% of Asian gamers say they have watched 3 hours or more of esports in a typical week. While esports are on the rise in America, it’s already huge globally. Two of the top ten highest-paid gamers in the world are Asian American, Mark Edward Fischbach, known as Markiplier, and Jeremy Wang, known as Disguised Toast, which makes a case again for the importance of representation for the consumption of media.

Esports’ global revenue is projected to reach $7 billion by 2023. Esports are already extremely popular in Asia, with the largest game company in the world, Tencent, headquartered in Shenzhen, China.

“The Asian American community is at an inflection point, which has created a ripe opportunity for marketers to drive business growth,” stated Mariko Carpenter, Nielsen's Vice President of Strategic Community Alliances. “Brands hoping to engage with Asian Americans must understand the critical importance of inclusive media representation and the ways Asian Americans are integrating technology for media consumption. Understanding how these forces intersect and intermingle will be the key to unlocking the potential of this market.”

There are a lot of takeaways from this new report, but the overarching one is simple, digital brands cannot afford to overlook the Asian American community. Even outside of the global pandemic, online media is becoming more important than ever. Brands that hope to capitalize on that growing popularity have to make sure they are including and serving the Asian American market. When that comes to TV and film, that might mean including more Asian or Asian American characters; something that Hollywood has also been employing however for a different reason, overseas box offices.

Possibly the biggest revelation for American brands, however, has to do with esports. Especially with live sports canceled, esports has never had a better time for their rise in America. Even traditional American sports have seen esports alternatives in the wake of the coronavirus, including the MLB broadcasting MLB The Show Players League. As the media landscape changes, listening to underrepresented communities is important especially as some are shaping the industry itself.

I am a stand up comic and writer living in Brooklyn, NY. When I'm not on stage, I am Comedy Editor for The Tusk, sit on the board of the Cinder Block Comedy Festival, and

…

I am a stand up comic and writer living in Brooklyn, NY. When I'm not on stage, I am Comedy Editor for The Tusk, sit on the board of the Cinder Block Comedy Festival, and writing my next project. I am passionate about writing about feminism and comedy as well as how women, LBGTQ people, and minorities are changing the face of comedy and entertainment. You may have seen me on Buzzfeed Video, Seriously.TV, aplus, or maybe just on twitter.